It’s a harsh truth that a Ilkeston residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the first few years due to the depreciation being disguised by increases in the Ilkeston property prices.Once your lease nears 85ish years, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips below eighty years - otherwise a higher amount will be due. The majority of flat owners in Ilkeston will be able to extend under the legislation; however a lawyer should be able to confirm if you qualify for an extension. In some cases you may not qualify. There are also strict timeframes and procedures to follow once the process is initiated and you will need to be guided by your conveyancer throughout the formalities.
It is conventional wisdom that a property with more than one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 45 years unexpired, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Yorkshire Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
Lease extensions in Ilkeston can be a difficult process. We recommend you secure professional help from a conveyancing solicitor and valuer with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Ilkeston lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
William was the the leasehold proprietor of a high value apartment in Ilkeston on the market with a lease of fraction over 59 years remaining. William on an informal basis spoke with his freeholder a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent initially set at £150 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were William to invoke his statutory right. William procured expert advice and secured satisfactory deal without going to tribunal and sell the flat.
Last month we were e-mailed by Mr and Mrs. S Gray , who acquired a ground floor apartment in Ilkeston in March 1997. The question was if we could approximate the price could be for a ninety year extension to my lease. Identical flats in Ilkeston with a long lease were worth £210,000. The mid-range amount of ground rent was £50 billed annually. The lease ended on 22 October 2105. Considering the 80 years as a residual term we calculated the premium to the landlord for the lease extension to be within £8,600 and £9,800 not including costs.
In 2011 we were e-mailed by Mr and Mrs. O Jackson who, having purchased a ground floor flat in Ilkeston in September 2007. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be to prolong the lease by 90 years. Similar premises in Ilkeston with 100 year plus lease were in the region of £275,000. The mid-range amount of ground rent was £45 invoiced per annum. The lease expiry date was on 15 April 2094. Given that there were 69 years as a residual term we calculated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 exclusive of professional charges.